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Morning Market Insight

Jan.25

January 25, 2016
Matt Erickson
Grain Marketing Specialist

Export inspections to be released this morning

CORN- Down 1
Corn finished up 7 cents last week as we have now rallied 13.25 cents since the contract low set on January 7th. Corn export sales were released on Friday and showed an excellent sales number of 45.6 mln bushels versus the average trade guess of 24- 35 mln bushels. Mexico was the top buyer for the week with 18.4 mln bushels. Corn on loan continues to grow, now at 657.3 mln bushels versus 485 mln bushels on loan at this time last year. As December 16 corn approaches $4.00 on the board, may not be a bad time to look at getting a few targets working heading into late Winter/early Spring. Nearby resistance for March futures remains at the 100 day moving average of $3.79 with support found at $3.6525. Below is a day chart of March 16 corn with the 100 day moving average.

SOYBEANS- Down 1
Beans actually finished down two as we sold off over the latter part of the week. We keep hanging right below the 100 day moving average, which seems to be forming pretty good resistance. Export sales on Friday were reported 36.2 mln bushels, which was on the high side of expectations. We are still in the volatile/critical timeframe for Brazil/Argentina soybean production, which currently the forecast is looking relatively benign. A good spot to start scaling in NC 16 targets looks to be around the $9.00 SX16 level a level we have not reached since December 18th. Nearby support for March beans is found at $8.705 with resistance located on the 100 day moving average of $8.81.

WHEAT- Minneapolis Up 3, Kansas City Up 2
Wheat news remains relatively light as world stocks remain large and the U.S. remains uncompetitive in the world market. Despite the high prices we still managed to report export sales at 13.3 mln bushels, which was towards the high end of expectations. After the 235,000 tonnes purchased last week Egypt looks to have sufficient wheat stocks to support domestic consumption until later this Spring. The winter wheat crop looks to be enduring favorable conditions as temperatures remain mild and moisture remains adequate.

The information contained above was taken from sources which Wheat Growers believe to be reliable, but is not guaranteed by Wheat Growers as to accuracy or completeness and is made available for information purposes only. There is a risk of loss when trading commodity futures and options.